SHENZHEN, China--(BUSINESS WIRE)--ZTE today celebrated the 15th anniversary of its terminals division with
the production of the company’s 500 millionth handset, becoming the
first Chinese mobile device brand to achieve the landmark.

In an anniversary event in Beijing, ZTE Corporation Chairman Mr. Hou
Weigui and Executive Vice President Mr. He Shiyou outlined the terminals
division’s strategies to drive further growth and generate increased
brand value to more than 500 partners and guests from industries
spanning telecommunications, semiconductor, retail, consulting, and
media.

Leveraging boutique products to sustain growth and build brand equity

ZTE plans to promote the Grand S quad-core smartphone and the Grand Memo
phablet internationally in the near future, after the two flagship
products scored impressive results since their introduction in China
this year. The Grand S and Grand Memo represent the state-of-the-art in
performance, specifications and industrial design in the global smart
devices industry, epitomizing ZTE’s uncompromising commitment to
innovation and superior quality.

“Boutique devices will be the focus for ZTE,” Mr. Hou said. “The company
will ensure the mobile device business will have all the resources and
support needed to develop and grow.”

Efforts to strengthen ZTE’s brand and engage consumers will be a key
part of ZTE’s strategy. The Times Square in New York, the Fukuoka Yahoo!
Japan Dome, the London Olympics stadium, and the works of Chinese film
director Zhao Baogang are now some of touch-points where ZTE can form
increased affinity with consumers around the world.

“It is crucial for ZTE to upgrade our brand and build brand equity,” Mr.
He said. “ZTE’s technology stands shoulder-to-shoulder with the world’s
leading companies, but the value of our brand is still
under-appreciated.”

ZTE is working with retailers and platforms including Wal-Mart, Taobao,
Phones4U, eBay, 360buy, Media Markt, Best Buy, and Suning in a new
distribution strategy combining partnerships with operators, e-commerce,
and retail channels.

Three-pronged strategy: Products, Branding and Marketing

The three-pronged strategy, focused on boutique products, branding and
marketing, will help drive the terminals division’s shift to higher-end
markets. ZTE will also leverage its globally-leading position in LTE
technology, and deepen our partnerships with the world’s top operators
and retailers, devoting increased resources on high-end markets such as
the United States and Europe, and embracing a multi-channel, multi-point
approach.

Since entering the handset industry in 1998, ZTE has become a mobile
device partner for more than 230 telecommunications operators in over
160 countries, generating more than 60% of terminals revenue outside.
ZTE has strategic partnerships with 47 out of the world’s top-50
operators, and is firmly established as the world’s No. 4 handset
manufacturer.